CÔTE D'IVOIRE

COUNTRY OVERVIEW

LOCATION AND SIZE.

Côte d'Ivoire (which means "Ivory Coast") is a West African country bordering the North Atlantic Ocean between Ghana and Liberia. It has an area of 322,460 square kilometers (124,502 square miles) of which 318,000 square kilometers (122,780 square miles) are occupied by land while water occupies the remaining 4,460 square kilometers (1,722 square miles). Its boundaries are 3,110 kilometers long (1,932 miles). These borders include 716 kilometers (445 miles) with Liberia in the west, 610 kilometers (379 miles) with Guinea in the northwest, 532 kilometers (330 miles) with Mali in the north, 584 kilometers (363 miles) with Burkina Faso in the north, and 668 kilometers (415 miles) with Ghana in the east. The country's coastline is 515 kilometers (320 miles) long.

Located on the Gulf of Guinea, Côte d'Ivoire has 2 major natural divisions. Its topography is a mix of plains and low hills containing a small mountainous area, with Mont Nimba rising to 1,752 meters (5,748 feet) above sea level in the Man region to the west. The south's equatorial rainforest (much of which has been logged) changes into woodland savanna to the north. The south has heavy rainfall and lush rain forests where foreign investors have large plantations of crops like coffee, cocoa, and bananas while the north is a granite plain characterized by savannas, where small landowners raise sorghum, corn, and peanuts. Côte d'Ivoire has one of the fastest rates of deforestation in the world.

POPULATION.

The population was estimated to be 15.9 million in 2001, up from 13.9 million in 1995, and 11.8 million in 1990. The population density is 50 people per square kilometer (129 per square mile), up from 43.6 in 1995 and 37.1 in 1990. The population growth rate has been 3.1 percent a year in the period 1990-98, and the fertility rate is correspondingly high. The average number of children per woman is 5.1. Urban population has been growing, rising from 40 percent in 1990 to 46 percent in 1999. The structure of the population is youthful, with only 2 percent aged 65 and over, while 52 percent are aged between 15 and 65, and 46 percent are under 15 years. Life expectancy at birth has been decreasing from 50 in 1990 to 46 in 1999, and the incidence of AIDS has been one of the main factors in this decline, with more than 1 million Ivorians affected.

The population includes 5 major ethnic groups: the Kru, Akan, Volta, Mande, and Malinke, inhabiting both the savannas and rain forests, subdivided into approximately 80 smaller groups. Nearly two-thirds of the population follow traditional African religions, while 23 percent are Moslems, and 12 percent are Christians. French is the official language, but there are many other local languages. The most widely spoken are Diula in the north, Baule in the center and west, and Bete in the southeast.

The net out-migration rate was estimated in July 2000 to be 1.6 migrants per 1,000 of the population. After Liberia's civil war started in 1990, more than 350,000 refugees fled to Côte d'Ivoire, but by the end of 1999 almost all the Liberian refugees had returned.

OVERVIEW OF ECONOMY

Côte d'Ivoire has benefited since independence in 1960 from considerable political stability, and to no small measure this has been due to the close relationship with the former colonial power, France, and the presence of French troops in the country. These provided a secure platform for economic development and an encouraging environment for foreign investment. This state of affairs was disturbed by a military coup (a domestic overthrow of a government) in 1999, but international pressure led to a return to constitutional civilian government in 2000.

Most people in the economy (more than half) depend on agriculture for their livelihoods, and they are the poorest section of the community. Farming is undertaken on small family plots, and much of the output is consumed by the producing family. The economy depends heavily on exports of tropical agricultural products to generate the foreign exchange that Côte d'Ivoire requires to purchase the manufactured goods it does not have the capacity to produce itself. The main exports are cocoa and cocoa products, coffee, and fish. Exports generate 40 percent of the GDP. However, the heavy reliance on tropical agricultural exports makes the economy very vulnerable to changes in international commodity prices and the weather. In 1994, the currency was devalued by 50 percent which resulted in higher prices to producers of export crops who have responded with higher output, but much of the benefit has been eroded by declining world prices, particularly for coffee. Sparked by the devaluation, in the 1994-98 period the real gross domestic product (GDP) growth averaged 5.5 percent providing the first sustained improvement in per capita GDP since the late 1970s. During this period, the external current account deficit (including grants) was lowered from 11 percent of the GDP in 1993 to 4 percent in 1998, and the external debt burden was reduced.

Despite the positive economic results of devaluation, the government is aware of its economy's vulnerability due to its heavy reliance on cocoa and coffee. To safeguard the economy, the government is doing its best to encourage other agricultural exports, such as pineapples and rubber, and exploring for offshore deposits of oil and gas. Since 1986, Côte d'Ivoire has been undertaking a program of economic liberalization, which has involved ending state monopolies, particularly in agricultural marketing, and privatizing state-owned enterprises in an effort to make these sectors more efficient.

The economic situation was further boosted by an increase in grants and low interest rate loans, mainly from France, between 1994 and 1998. Significant progress was made in consolidating public finances during this period with the overall budget deficit declining from about 12 percent of the GDP in 1993 to 2.5 percent in 1998. The 50 percent devaluation of CFA franc in January 1994 caused a single jump in the inflation rate to 26 percent in 1994, but the rate fell sharply to 9.4 percent in 1996 and 1.3 percent in 1999.

The sharp downturn in the terms of trade, with cocoa prices falling by 40 percent below their end-of-1998 level as well as a significant slowdown in disbursement of external assistance have given rise to problems. Economic growth has slowed, and investment has slipped with the private sector 's adoption of a more cautious stance in the uncertain political environment following the 1999 coup.

POLITICS, GOVERNMENT, AND TAXATION

In pre-colonial times, the territory of present-day Côte d'Ivoire was inhospitable to the sea-borne European traders because of the dense, thinly populated tropical forest stretching hundreds of kilometers inland from the Atlantic Ocean. There was little European interest in the interior before the mid-19th century. Northern Côte d'Ivoire, largely savanna and populated by Muslims, was historically controlled by the Guinean kingdoms, which periodically exerted influence over much of modern Mali, Guinea, and Niger. The French presence grew after 1893 when the colony of Côte d'Ivoire was officially established. The potential of the country's agricultural and forestry resources came to be realized with the building of the railway through Côte d'Ivoire into present-day Burkina Faso, and by the late 1940s, Côte d'Ivoire had replaced Senegal as France's richest colony in West Africa.

Côte d'Ivoire became independent in August 1960, with Felix Houphouet-Boigny, a successful cocoa farmer and former minister in the French government, as president. Close ties to France have characterized the period since independence, and trade and investment links have expanded, as well as the number of French expatriates working in Côte d'Ivoire.

Capitalizing on his carefully cultivated personal relations with successive French governments as well as his skillful economic and political management, Houphouet-Boigny dominated the country's political life for more than 3 decades. Houphouet-Boigny's party, Parti Democratique de Côte d'Ivoire (PDCI), became the only legal political party in Côte d'Ivoire. In the 1960s and 1970s, he presided over Côte d'Ivoire's emergence as one of Africa's few stable and economically successful countries. With the introduction of multiparty politics in 1990, his PDCI remained in control. There was remarkably little internal strife and no significant external threat, leading to a resolution not to develop a costly and possibly untrustworthy army, and instead entrusting national defense to France.

However, Côte d'Ivoire faced serious social and economic problems in the 1980s with the fall in world commodity prices. As Houphouet-Boigny slipped into old age and popular dissent grew in the beginning of the 1990s, demonstrations and strikes became commonplace. The first multiparty elections were held in 1990 and were won by Houphouet-Boigny's PDCI amid accusation from the opposition of vote rigging.

Flamboyant Laurent Gbagbo, leader of the Front Populaire Ivorienne (FPI), defiantly led thousands of protesters through the streets of Abidjan in 1992, resulting in widespread rioting in the commercial capital and attracting a stern reaction from the authorities. Many protesters, including Gbagbo, were arrested and charged under legislation rushed through parliament, although many were freed 6 months later.

Mr. Houpouet-Boigny's death in 1993—which was feared would lead to social chaos and dash hopes of a return to economic prosperity—resulted in a controversial power transfer to Konan Bedie, formerly president of the Assemble Nationale.

In the October 1995 presidential elections Konan Bedie won 95 percent of the vote amid protests from the opposition against a PDCI-dominated parliament's passing of a law that barred Alassane Dramane Ouattara, a World Bank-schooled economist who had been prime minister since 1990, from participating. The law excluded anyone who was considered not born to Ivorian parents, or who had been resident abroad in the preceding 5 years, and Ouattara was deemed to fall into both categories. A pro-Ouattara party, the Ressemblement des Republicans (RDR), was formed by defectors from the reformist wing of the PDCI. Whereas the presidential elections were marred with violence, the parliamentary elections were more peaceful, resulting in a PDCI victory with 149 of the 175 available seats while the rest were split between the FPI and the RDR.

In December 1999, a military coup—the first ever in Côte d'Ivoire's history—overthrew the government and installed military rule under General Robert Guei. The presidential elections in October 2000 were contested by Guei and Laurent Ggagbo of the FPI. Ouattara of the RDR was prevented from running. The results were unclear, and Guei attempted to hijack the process by announcing himself the elected president. Demonstrations and protests and pressure from the international community prevailed, however, and on the basis of the available electoral results, Gbagbo was declared president.

Côte d'Ivoire has a republican (constitutional) government with a multiparty presidential regime established in 1990. It is a country with 50 administrative departments (or districts), with a constitution that was first drawn up in November of 1960 but has been amended on numerous occasions, the last time being in July 1998. The constitution recognizes universal adult suffrage at 21 years of age. The legal system is based on French civil law and customary law with judicial review in the Constitutional Chamber of the Supreme Court. There is a unicameral (1-chamber) National Assembly of 175 seats to which members are elected by direct popular vote to serve 5-year terms.

Côte d'Ivoire has a more effective tax revenue collection system than most of sub-Saharan Africa. It includes a wide range of taxes on personal income, capital gains, value added on economic activities, exports, and imports. Tax revenues as a share of GDP were 20 percent in 1999. Taxes on international trade are around 40 percent of total government revenue. Income, profits, and capital gains taxes were 21 percent, taxes on goods and services were 5 percent, and the remaining 34 percent came from other taxes, licenses, and the surpluses of state-owned enterprises. There has been a steady rise in revenue collection, which has favorably affected the fiscal situation from 1994 to 1996. Tax revenue increased by an average annual rate of 24 percent in this period, reflecting the impact of the devaluation, strong GDP growth and the effects of improved tax measures. Tax revenues have increased because of the government's efforts to reintroduce an export tax on cocoa and coffee in 1994 and to build the capacity of its revenue departments by implementing strategies to curb fraud and tax evasion.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

By 1996, Côte d'Ivoire had a fairly well-developed network of 50,400 kilometers (31,317 miles) of roads, of which 4,889 kilometers (3,038 miles) were paved; about 6,000 kilometers (3,728 miles) were primary roads; and 7,000 kilometers (4,350 miles) are secondary roads. A fall in railway traffic has increased the burden on the road network. The government plans to develop the system further, for instance, by extending the country's main highway from Abidjan to Yamoussoukro and to Grand-Bassam, southwest of Abidjan.

The only railway line in Côte d'Ivoire was built by the French, and it links Abidjan with Ouagadougou, the capital city of neighboring Burkina Faso. The Ivorian side is 660 kilometers (410 miles) of meter gauge railway. The rail company, Societe Ivoirienne des Chemins

de Fer (Ivory Society of Railroads, SICF), saw the number of passengers decline by 75 percent to about 760,000 by 1993, owing in part to the poor condition of the rolling stock.

There are 980 kilometers (609 miles) of navigable rivers and canals, as well as numerous coastal lagoons. There are also 4 major ports: Abidjan, Aboisso, Dabou, and San-Pedro. The Port Autonome d'Abidjan (PAA) is the busiest in Francophone West Africa (the former French colonies in West Africa, in which there is still a legacy of French civil law and language) and earns revenue from transit traffic to and from the country's land-locked neighbors, particularly Burkina Faso and Mali. Petroleum products account for approximately 40 percent of its tonnage. Côte d'Ivoire's second largest port, San Pedro, handles smaller volumes of timber and cocoa.

In 1999, there were an estimated 36 airports in the country, 7 of which had paved runways. Côte d'Ivoire has an important stake in the multinational Air Afrique, which provides most international connections.

Although an estimated 64 percent of the country's electricity is generated from hydroelectric plants, gas power stations are becoming more important with fossil fuels constituting 36 percent of the country's electric energy production. Total electric energy production in 1998 was estimated to be 3.36 billion kilowatt hours (kWh) against a consumption demand of 3.2 billion kWh. Oil is refined for domestic use but is also exported to the region, including to Nigeria where a dismal downstream oil industry has led to persistent oil shortages.

There were 182,000 telephone land lines and more than 60,000 mobile cellular phones in use in 1998. By June 1999 the telephone system was well-developed by African standards but operating far below capacity. Domestic needs are met by land lines and microwave radio relays, 90 percent of which are digitalized. Two Intelsat satellite earth stations and 2 coaxial submarine cables serve international demand. The government sold 51 percent of the national telecommunications company, CITelcom, to France Telecom in 1997, which renamed the company Côte d'Ivoire Telecom. At the time of privatization, CI-Telecom was operating 120,000 lines, but the government intended to have 400,000 lines in use by 2002. The long waiting list has enabled many Ivorian companies to benefit from the scramble for market share after liberalization of the industry.

Radiodiffusion-Television Ivorienne (Ivorian Radio Broadcasting-Television, RTI) is a government-owned corporation but is in most respects independent. It is partly funded by advertising and operates 2 television channels and a national radio service, broadcasting in French and local languages. Radio Espoir is owned and operated by the Roman Catholic Church. In 1999 there were a total of 2 AM, 8 FM and 3 shortwave stations, as well as 14 television stations. In 1997 there were 900,000 television sets.

While there were a number of new publications as a consequence of the 1990 political liberalization, many disappeared during Konan Bedie's tenure, and at least 20 journalists have been jailed since 1994. Nonetheless, there remains a healthy opposition press which includes the daily Notre Voie and Nouvel Horizon, owned by the pro-FPI Nouvel Horizon media group. This alternative coverage provides a counterweight to the dominance of the pro-government press, mainly the daily Fraternite Matin founded in 1964 and its evening sister paper, Ivoire Soir, with a circulation of about 50,000 and 40,000 respectively.

ECONOMIC SECTORS

For many years after independence from France in 1960, Côte d'Ivoire was the jewel of West Africa, with a strong economy—initially based on agriculture, particularly coffee and cocoa—that attracted many thousands of workers from neighboring countries. Sizeable French and Lebanese communities established themselves in the capital, Abidjan. In 1998, agriculture contributed 32 percent of the GDP, industry 18 percent, and services 50 percent. Agriculture remains based on 2 major crops— cocoa and coffee, which together provided 45 percent of export revenue in 1998. The industrial sector's share of the GDP increased in 1999, and this trend is likely to continue in the coming decade as the country develops food processing. Services, 50 percent of the GDP in 1998, are led mostly by trade and transport, the latter accounting for 30 percent of the GDP.

AGRICULTURE

Agriculture (including forestry and fishing) is a very significant sector of Côte d'Ivoire's economy. It contributed an estimated 32 percent of the GDP and employed about 51 percent of the labor force in 1998. However, the disparity between share of the GDP and share of the labor force indicates that agriculture generates much lower incomes than the other 2 major sectors, industry and services. Exports of cocoa and related products contributed an estimated 37 percent of total export earnings in 1998. Export taxes on cocoa and coffee contributed more than 10 percent of government revenue in each year since 1996.

Production of cocoa beans doubled between 1970 and 1979, making Côte d'Ivoire the largest exporter in the world. The country has been the world's largest cocoa producer since 1977-78, when its level of production overtook that of Ghana. Overall output continued to rise, with some fluctuations, reaching a record 1.1 million metric tons in 1995-96 and an estimated 1 million metric tons in 1996-97, up from an annual average of 750,000 metric tons over the 1990-94 period. This increase, however, was attributed to the government incentives program of the 1980s as well as the resultant switching of resources from coffee production. Until 1989, both coffee and cocoa attracted virtually the same producer prices, although coffee was more heavily taxed and is more difficult to grow.

The total land area is distributed among different uses as follows: arable land 8 percent, permanent crops 4 percent, permanent pastures 41 percent, forests and woodland 22 percent, and others 25 percent. In 1993 only 680 square kilometers (262 square miles) of land was under irrigation. Agricultural production increased by an average of 2.4 percent annually between 1990-98. There were 2.44 million hectares of arable land in 1994, 1.27 million hectares of permanent cropland, and 13 million hectares of meadow and pasture. The other major cash crops include cotton, rubber, bananas, and pineapples. The principal subsistence crops are maize, yams, cassava, plantains, and, increasingly, rice, as demand continues to outstrip local production of rice. In 1996, it was estimated that there were 1.28 million cattle, 1.31 million sheep, 1.0 million goats, 290,000 pigs, and 27 million chickens.

With about two-thirds of the total export earnings provided by the sale of coffee and cocoa, which are both highly vulnerable to fluctuations in international prices, the government has sought to diversify agricultural production. Since the 1960s, Côte d'Ivoire has become a major producer of palm oil, and local processing of palm products has developed. Cotton production has done particularly well in recent decades, enabling Côte d'Ivoire to compete—alongside Sudan, Mali, and Benin—for the position of Africa's second largest producer of cotton after Egypt. Most of the cotton is processed locally in 8 ginning complexes both for export (some 80 percent of total production) and the local textile industry.

The rubber industry has also shown growth since the mid-1980s with output increasing by more than 50 percent between 1990 and 1994 in response to government plans for Côte d'Ivoire to become Africa's leading rubber producer. Côte d'Ivoire is also a significant producer of pineapples and bananas with exports mostly directed to European markets.

In recent years, the government has stressed the need to increase output of basic food crops such as rice in which Côte d'Ivoire is not self-sufficient. A deficiency in the sugar supply and the need to save foreign exchange on sugar imports led the government to initiate a sugar program in the 1970s. By the 1980s, the 2 schemes could supply most of internal demand, then estimated at 80,000 metric tons a year, but production costs were twice the world price, leading to cancellation of further sugar projects.

Livestock is not a significant sector, comprising mostly small herds, which can supply only about one-third of the nation's demand for livestock products. On the other hand, fishing is a significant activity, and Abidjan is the largest tuna-fishing port in Africa with an annual catch of more then 90,000 metric tons. However, most of this catch is by foreign vessels, and the only benefits to Côte d'Ivoire are the license fees. Ivorian participation in this sector is still low, with the domestic fishing fleet numbering only 38 vessels and most traditional fishing being undertaken by non-Ivorians. Domestic production meets only about 40 percent of local demand.

Forestry has always been a significant source of export revenue, from both logs and sawn timber. Boosted by enhanced price competitiveness since 1994, timber has displaced both coffee and petroleum products as the country's second highest earner of foreign exchange earnings, after cocoa. Most of the production is carried out by large integrated foreign-owned firms. The area of exploitable timber has fallen to only about 1 million hectares in 1987 compared with some 15.6 million hectares in 1960 because of logging and the encroachment of agriculture into forest areas. Progress in reforestation has been disappointing, and the government is committed to a ban on exports of timber once the country's foreign payments position has improved.

The main current environmental issue is deforestation. Some 94 percent of the country's forests—once the largest in West Africa—have been cleared by the timber industry since independence. Water pollution from sewage, industrial plants, and agricultural effluents is also causing concern.

INDUSTRY

Industry includes agricultural processing, mining, manufacturing, construction, and power. It comprises mostly foodstuffs, beverages, wood products, oil refining, automobile assembly, textiles, fertilizer, construction materials, mining, and electricity. It contributed an estimated 18 percent of the GDP in 1998 and employed about 12 percent of the labor force in 1994.

MINING.

Mining contributed only an estimated 0.3 percent of the GDP in 1998. This sub-sector's contribution, however, is expected to increase considerably following commencement in the mid-1990s of commercial exploitation of important offshore reserves of petroleum and natural gas. Gold and diamonds are also produced, although the illicit production of the latter has greatly exceeded formal commercial output. There is believed to be a significant potential for the development of nickel deposits, and there are also notable reserves of manganese, iron-ore, and bauxite.

MANUFACTURING.

The manufacturing sub-sector contributed about 14.6 percent of the GDP in 1998. It is dominated by agro-industrial activities such as processing of cocoa, coffee, cotton, palm kernels, pineapples, and fish. Crude petroleum is refined at Abidjan while the tobacco industry uses mostly imported tobacco leaf. In 1998 almost two-thirds of Côte d'Ivoire's electricity was derived from thermal sources while the rest was from hydro-generation. Through exploitation of natural gas reserves, the country is expected to generate sufficient energy for its own requirements by 2000 and for regional export thereafter. Imports of petroleum products including crude oil accounted for 14.9 percent of the total value of imports in 1998.

Manufacturing output expanded in real terms at an average rate of 8.9 percent per year between 1965 and 1974, easing to 5.4 percent per year in the following decade after the main industrial opportunities had been exploited. However, this sector continues to be sustained by the high rate of growth in domestic demand, arising mainly from the rapid increase in the country's population and the boost in competitiveness to domestic industry resulting from the 1994 devaluation of the CFA franc. Between 1990 and 1998, industrial GDP increased by an average of 5.1 percent per year, while the industrial production growth rate was estimated to be about 15 percent in 1998.

SERVICES

A major economic feature of the 1990s has been the expansion of the services sector. It contributed about 50 percent of the GDP in 1998 and employed about 37 percent of the labor force in 1994. The transformation of Abidjan's stock market into a regional exchange for the member states of the Union Economique et Monetaire Oeust-Africaine (UEMOA) together with the hosting of the headquarters of the Africa Development Bank is expected to enhance the city's status as a center of financial services.

Emphasis was also placed on the revival of tourism as a major source of foreign exchange. Tourism developed strongly in the 1970s with a newly created ministry stimulating diversification both in location (away from the Abidjan area) and in type of visitors (aside from business travelers) who previously accounted for almost two-thirds of arrivals. Special tax incentives and guarantees were offered for hotel construction, and by 1984 the number of hotels was 452, about 5 times the 1972 level. The number of tourists increased from 93,000 in 1974 to 198,900 in 1979 with business visitors accounting for 40 percent of arrivals. Since then, visitor arrivals have fluctuated in the range of 200,000-290,000 per year, broadly reflecting trends in tourism. The government's target is for 500,000 arrivals by 2000.

Abidjan is also central to regional communications and trade. The service sector's contribution to the GDP increased at an average rate of 3.5 percent per year from 1990 to 1998.

INTERNATIONAL TRADE

Côte d'Ivoire had very rapid economic growth between 1950 and 1975, with fewer problems with the balance of payments than most African countries. Exports increased at a faster rate than the GNP and they remain the main factor contributing to economic growth in the new millennium. Côte d'Ivoire's balance of trade has always been in surplus because of the strength of its exports, which have largely been determined by the level of earnings from sales of coffee and cocoa. In recent years, the surplus has also been boosted by the 1994 devaluation of the CFA franc, affecting both cocoa and timber exports, although increases in export earnings from

logs and sawn wood have been limited owing to the impending exhaustion of the country's forestry resources. Other exports that have responded favorably to the currency adjustment are canned fish, natural rubber, bananas, and other fruits. The CIA World Factbook estimated the country's exports to be US$3.8 billion in 2000.

Despite the government's wish to diversify the direction of trade, the existing pattern reflects Côte d'Ivoire's historical ties with European colonial powers. In 1998, the EU absorbed an estimated 58 percent of all its trade, with France accounting for 21 percent. Trade with African countries is increasing and represented 28 percent of total trade in 1998, and the government is eager to promote closer trade links with the 8-member Francophone Union (UEMOA), of which Côte d'Ivoire is a member. UEMOA countries are in the process of reducing import duties on their goods, and the government hopes that West Africa will provide a market for 50 percent of total exports early in the 21st century. Meanwhile, exports to Asia continue to increase, reaching 15 percent of total exports in 1998. The CIA World Factbook estimated Côte d'Ivoire major export partners to be France (15 percent), United States (8 percent), Netherlands (7 percent), and Germany and Italy (both at 6 percent) in 1999.

Imports are mainly food, manufactured consumer goods, heavy machinery, transport equipment, and fuel. In 2000, the total value of imports was estimated to be US$2.5 billion. Imports are sourced from France (26 percent), Nigeria (10 percent), China (7 percent), Italy (5 percent), and Germany (4 percent).

MONEY

The unit of account is the West African CFA franc. There are no restrictions on the import of local currency. Monetary policy in Côte d'Ivoire is set by the regional central bank, the Central Bank of West African States (BCEAO). The Bank aims to conduct a prudent policy

consistent with the fixed exchange rate to the French franc, which since January 1999 has implied a fixed exchange rate to the euro, the new common currency of the European Union. In January 2000 the exchange rate was 647CFA Fr = US__BODY__, a depreciation in the value of the CFA franc of 23 percent from 499CFA Fr = US__BODY__ in 1995.

The BCEAO controls monetary policy in the Côte d'Ivoire, and a cautious rate of increase in the money supply has kept the inflation rate low in since 1995. In 1999 inflation was estimated at 0.8 percent a year.

POVERTY AND WEALTH

In 1998, it was estimated that 17.5 percent of the population lived below the dollar-a-day poverty line (this line is based on the income required to provide the absolute minimum nutrition, clothing, and shelter). It means that 24 percent of the children under 5 years of age are malnourished (the figure is 1 percent in the United States), and life expectancy is 47 years (in the United States it is 77 years). However, poverty levels are markedly better in Côte d'Ivoire than nearby Senegal, which has almost exactly the same level of average income per head but has 34 percent below the dollar-a-day

poverty line. Almost all those in poverty are in the rural areas, relying on small-scale agriculture for their livelihoods, and suffering because of poor land, inadequate rainfall, and not enough income to purchase good seeds, fertilizer, or farm machinery.

The GDP per capita was at US__BODY__,730 in 1998, relatively high for the region. Nevertheless, this placed Côte d'Ivoire in the low-income category of countries and is put in perspective by the US$29,340 level of the GDP per head for the United States. As with most developing countries, there is considerable income inequality, with the poorest 10 percent of the country's population sharing only 2.8 percent of the country's household income while the share for the richest 10 percent is 28.5 percent.

The UN's Human Development Index (HDI), which attempts to measure the quality of life on the basis of real GDP per head, the adult literacy rate, and life expectancy at birth, placed Côte d'Ivoire at 154 out of 174 countries in 1999, firmly in the low human development category.

WORKING CONDITIONS

The workforce in 1998 was estimated at 6 million, of which 33 percent were women. Of children aged 10 to 14, about 20 percent were engaged in full-time work. There are no official unemployment figures for Côte d'Ivoire, but unemployment figures have little significance in a low-income African economy. There are very few with no work at all. There are no unemployment benefits, and those who do not work rely on support from charities or their families. Many people would like a modern sector job, but eke out an existence on family farms or in casual informal sector activities (such as hawking, portering, and scavenging) in the urban areas.

The National Union of Côte d'Ivoire was formed in 1959 but was replaced in 1962 by the General Union of Côte d'Ivoire Workers (Union Generale des Travailleurs de Côte d'Ivoire), controlled by the PDCI. In mid-1980s, it had some 190 affiliated unions and 100,000 members. A labor inspection service supervises conditions under which foreign workers are employed. The greater prosperity of Côte d'Ivoire has led to considerable migrations of workers from Mali and Burkina Faso, many of them illegal workers, and the inspection service tries to prevent them from being unfairly exploited by employers.

Labor legislation is still based on the French overseas labor code of 1952 which provides for collective agreements between employees and trade unions, the fixing of basic minimum wages by the government, and a 40-hour week for all except agricultural workers for whom longer working hours are permitted. The average annual wage was estimated by the IMF to be US$4,545 in 1999, up from about US$4,200 in 1993 with government employees earning on average better than those in the private sector. Legislation also provides wage earners with paid annual leave and children's allowances. The government has the power to impress persons into public service for up to 2 years.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1893. Côte d'Ivoire becomes a French colony.

1944. Felix Houphouet-Boigny founds Syndicat Agricole Africain (SAA) to protest the colonial authorities' preferential treatment of French planters in the recruitment of farm labor.

1960. Republic of Ivory Coast is proclaimed with Felix Houphouet-Boigny elected president. A new constitution is adopted.

1963. A plot against the government is uncovered, and hundreds are arrested, including members of the National Assembly and cabinet ministers.

1969. Street clashes between Ivorians and immigrant workers are followed by student demonstrations. Diplomatic relations with the Soviet Union are broken.

1970. The government restricts immigration of foreign workers and suppresses a group of Bete rebels led by Gnabe Opadjele.

1973. A coup attempt by 12 army officers is foiled.

1990. Opposition parties are legalized. First multiparty elections are held. Houphouet-Boigny is re-elected president.

1993. Felix Houphouet-Boigny, Côte d'Ivoire's president since independence in 1960, dies in December. Henry Konan Bedie, president of the National Assembly, succeeds him.

1994. The CFA franc is devalued in January by 50 percent, preparing ground for further economic reforms and a sustained period of economic growth.

1995. In October, Konan Bedie wins 95 percent of the vote in the presidential elections in the face of a widespread opposition boycott.

1998. The constitution is amended in August strengthening the powers of the president and barring Ouattara from standing in the 2000 presidential election.

1999. Bedie is ousted in a coup, and a military government under General Robert Guei is installed.

2000. The presidential elections between General Guei and Laurent Ggagbo of the FPI occurs. After an attempt by Guei to announce himself elected, Gbagbo is declared president.

FUTURE TRENDS

There is no question but that the 1999 coup was a severe setback to the image of Côte d'Ivoire as a secure and stable civilian-led country where the rule of law was respected and the business environment was encouraging for domestic and foreign investment alike. It is fortunate that the matter was speedily settled, but the subsequent elections were resolved only by civilian demonstrations and international pressure. A major task for the new government is to reestablish the strength of democratic procedures and ensure the support of the armed forces.

The strong rebound in Côte d'Ivoire's economic performance following the 1994 devaluation permitted sustained improvement in per capita incomes after several years of decline. This performance was marked by a return to low inflation and a sizeable reduction in external debt, as well as the substantial progress with the extensive economic reform program. However, growth was expected to slow down in 2000 because of the country's difficulty in meeting the conditions of international donors, continued low prices of key exports, and post-coup uncertainty.

The authorities recognize that the private sector is the engine of growth and employment and seem inclined to strengthen the climate for private sector activity through continued enterprise reform. If the governance issues can be addressed and the management of the public sector improved, Côte d'Ivoire should be able to realize its growth potential and bring about a sustained reduction in poverty.

DEPENDENCIES

Côte d'Ivoire has no territories or colonies.

BIBLIOGRAPHY

"Côte d'Ivoire." Europa World Yearbook. London: Europa Publications, 2000.

"Côte d'Ivoire: Selected Issues and Statistical Appendix." International Monetary Fund. <http://www.imf.org/external/pubs/cat/longres.cfm?sk=3657.0>. Accessed February 2001.

Economist Intelligence Unit Country Profile: Côte d'Ivoire. London: Economist Intelligence Unit, 2000.

Hodd, Michael. "Côte d'Ivoire." The Economies of Africa. Dartmouth: Aldershot, 1991.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.cia.gov/cia/publications/factbook/geos/iv.html#Econ>. Accessed October 2001.

U.S. Department of State. Background Notes: Côte d'Ivoire, July 1998. <http://www.state.gov/www/background_notes/cote_d_ ivoire_0798_bgn.html>. Accessed October 2001.

—Allan C.K. Mukungu

CAPITAL:

Yamoussoukro has been the official capital since 1983. However, Abidjan remains the administrative center, and most countries maintain their embassies there.

MONETARY UNIT:

Communauté Financiére Africaine franc (CFA Fr). 1 franc equals 100 centimes. Coins exist in 5, 10, 50, 100, and 500 CFA Fr. Paper currency denominations are of 500, 1,000, 2,000, 5,000, and 10,000 CFAF.

CHIEF EXPORTS:

Cocoa, coffee, tropical timbers, petroleum, cotton, bananas, pineapples, palm oil, cotton, and fish.

CHIEF IMPORTS:

Food, manufactured consumer goods, heavy machinery, fuel, and transport equipment.

GROSS DOMESTIC PRODUCT:

US$26.2 billion (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US$3.8 billion (f.o.b., 2000 est.). Imports: US$2.5 billion (f.o.b., 2000 est.).